WASHINGTON–U.S. Senators Chris Murphy (D-Conn.) and Richard Blumenthal (D-Conn.) joined Elizabeth Warren (D-Mass.) in sending a letter to the Founder and CEO of EasyKnock—a real estate company that bought people’s homes and turned them into renters—probing the company’s allegedly deceptive and predatory business practices and their impacts on customers, after the company abruptly closed its doors on December 5, 2024. The letter was also signed by Tina Smith (D-Minn.), Chris Van Hollen (D-Md.), Bernie Sanders (I-Vt.) and Peter Welch (D-Vt.).

Before its recent closure, EasyKnock purchased homes from financially distressed homeowners through its “Sell & Stay” program, promising they would “[r]eceive 100% of [their] home’s value without having to move.” However, consumer lawsuits and multiple state attorneys general have alleged that EasyKnock’s deceptive advertising and business practices often left former homeowners far worse off than they were before the company found them, causing homeowners to lose cherished family homes and much of the equity they originally had in them. 

“We are deeply concerned about EasyKnock’s lasting impact on vulnerable homeowners, including homeowners with pending residential sale-leaseback agreements with your company, and the extent to which the company will be handling these agreements in the wake of its abrupt closure earlier this month,” wrote the lawmakers.

According to reports, EasyKnock customers rarely received anything close to the full market values of their homes, and the company employed predatory tactics, such as consistent rent increases in spite of a lack of improvements to properties, placing customers in financial positions where they could no longer repurchase their homes.  

“Across America, the allegations against EasyKnock followed a similar pattern: EasyKnock made misleading statements about services to entrap vulnerable homeowners only to break its promises at the expense of working families,” continued the lawmakers.

In March 2024, the Connecticut Attorney General’s Office launched an investigation into EasyKnock, Inc. over potentially deceptive home sale-leaseback deals.

This month, EasyKnock abruptly shut down. According to public reports, customers, shocked and confused by the news, were given little explanation of the closure, with one customer reporting that she was notified that a company called NESE Property Management now manages her home.

“EasyKnock’s decision to ‘shut down’ raises even more questions about how it will handle ongoing agreements and properly compensate homeowners who were negatively affected by the company’s actions,” concluded the lawmakers.

The senators are requesting information about EasyKnock’s past business practices and its abrupt closure by December 30, 2024.

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